Regulations
SEBI still not ready to share PMS data despite CIC order

In January, the Central Information Commission directed the market regulator to upload from April onwards information about PMS schemes on its website. Despite assurance from SEBI to the CIC, it has not uploaded any data on PMS for which Moneylife has been fighting a long battle

Market regulator Securities Exchange Board of India (SEBI) has refused to share information on portfolio management services (PMS) in the public domain as the deadline to disclose the same by April has passed by. Despite an order from the Central Information Commission (CIC) and subsequent assurance, the market regulator has not yet uploaded any data on PMS on its website. After fighting with SEBI for over a year, the CIC had ruled in favour of Moneylife and directed the market regulator to publish the data related with PMS on its portal.
 

Our email and SMS to SEBI officials asking about the compliance to the CIC order has remained unanswered till writing this report.
 

After the order from Chief Information Commissioner (CIC) Satyananda Mishra, issued after a hearing conducted on 17 January 2012, SEBI wrote to Moneylife assuring compliance with the order. In a letter on 18 February 2013, SEBI stated, “The Information Technology Department of SEBI is devising a suitable mechanism/link so that the monthly report received from the portfolio managers for the month of April 2013 and onwards may be transferred to the SEBI website. Accordingly, efforts are being made to make available the monthly report of the portfolio manager on the SEBI website for the month of April 2013 and onwards.”
 

Moneylife wrote an email to SEBI and requested for the link. Nevertheless, so far there is no response from the market regulator.
 

Earlier, Moneylife had won a hard fought case, which lasted more than a year, against SEBI to obtain details and performance of all the PMS schemes. In its 2nd RTI appeal hearing held on 17 January 2013, the CIC had ordered SEBI to disclose all the details of PMS schemes and upload the same on the website from April onwards.
 

This order not only represents a big victory for Indian investors and comes at the end of a long battle by Moneylife to ask the regulator to make PMS schemes more transparent. For the past three years, Moneylife has also helped several investors recover funds, wrongly deducted by PMS. The wrongful losses have extended from a few lakh rupees to as much as Rs1 crore.
 

The CIC’s order said, “We have carefully considered the facts of the case and the submissions made before us. It is an admitted fact that the desired information is available with SEBI, if not on an annual basis, at least on a monthly basis. Since this information is received electronically, it’s publication through the website would not be a difficult task. By publishing such information about all Portfolio Management Services (PMS) regulated by it, SEBI would serve two objectives. One, help the investing public to access all information at one place and not have to visit 50 different websites and, two, eliminate the need for seeking such information under RTI, from time to time”.
 

A more detailed report on how Moneylife had won the case can be read over here: Power of RTI: CIC directs SEBI to disclose all information related to PMS.
 

Last year, SEBI had stonewalled our initial RTI application for disclosure of PMS schemes, when it cited under the pretense of “fiduciary relationship” as the sole reason for not providing information. The story can be read here: SEBI misrepresents public information on PMS as fiduciary; offers mindless response to simple RTI query.
 

Horror stories of past PMS looting investors prompted us to file an RTI against SEBI to disclose information of such schemes, in order to make it the system more transparent. You can find some alarming cases Moneylife had covered, in detail, over here:

  1. Sordid Tales  of Kotak PMS.
  2. Broking Houses Make Investors Go Broke.

Unless information pertaining to PMS is put up, investors will continue to find it difficult to decide which PMS to invest in and make informed decision. Moreover, without such information, gullible investors will be hardsold such poor PMS schemes, which will lead to capital erosion as evidenced by the stories written above.

User

COMMENTS

CA PRADEEP AGARWAL

4 years ago

Who says SEBI is there to protect only one or two upright officers protect, ultimately what they get a kick in the ass.

CA PRADEEP AGARWAL

4 years ago

No doubt MLF team is putting on relentless efforts to protect investors,

But, SEBI has bosses in Delhi under whose directions the data is not put up as directed by CIC.

hasmukh

4 years ago

SEBI was formed to protect Investors. It must understand this and prove their responsibility.
Moneylife deserves full complements for taking lot of pains and pursue the cause of the investing public.

DB DESAI

4 years ago

Increasing the minimum amount is one way but then also there should be strict regulation and disclosure because neglecting it would give a wrong message that investors with big money can be duped or are available for misuse. This will weaken the faith in law. It should not happen. There are people who have earned their crores by honest and genuine hard work. Secondly, why the govt. machinery, regulators, committees take so much of time to understand the problem in a particular scheme or financial product is unimaginable because there is so much written in the media about such schemes, a very general observation can give you an idea of what is the problem in the scheme and then it should be plugged before it getting to the size of the current issue of PMS.

REPLY

CA PRADEEP AGARWAL

In Reply to DB DESAI 4 years ago

BIG MONEY IS BEING DUPED AS WELL AS MISUSED, SEBI OUGHT TO PROVE THAT THEY HAVE NEITHER DUPED OR MISUSED BIG MONEY. BUT WILL THE POLITICIANS FILL THE GAP, THEY FILL THE GAP WHEN A MAJORITY CHUNK IS WIPED OFF.

Dilip Samant

4 years ago

Congratulation. Keep it up.

Suiketu Shah

4 years ago

Terrific battle by moneylife.Great work.I am very interested in the PMS performance of HDFC Bank.


Once this data is available to the general public,almost noone wl go for PMS,the record wl be so disastrous.

Glancy Xavior

4 years ago

SEBI is here to PROTECT the interest of investors(as per law). Then why they are reluctant to come out with the DISCLOSURE? Message clear... Protect the interest of Portfolio managers.

We are awaiting for a verdict of Supreme court Case on making the Exchanges(NSE/BSE) under RTI Act

Vaibhav Dhoka

4 years ago

Now its SEBI's turn to get rap on its knuckles as in COALGATE scam .

R Balakrishnan

4 years ago

A strong case exists to raise the minimum investment size to a crore or more, so that the tiny guys with five lakh etc do not enter this space. Once that is done, it hardly matters whether PMS performance is disclosed or not. Someone with a crore can afford to be ignorant. The problem is that we let small guys in to every show in town and then these guys get ripped off. Children should not be given access to adult movies

REPLY

Nilesh KAMERKAR

In Reply to R Balakrishnan 4 years ago

Very well said sir. . . and how about disallowing those adults who behave like children.

SBI General health insurance policy offers location based premium

SBI General retail mediclaim offers differential premium based on your location, which is a growing trend. While the premiums are reasonable, the maximum cover offered is only Rs5 lakh. SBI bank and other bancassurance partners will be the lead channel for the sales

SBI General health insurance policy offers flexible options – Metro plan (Plan A - Mumbai and Delhi), Semi Metro plan (Plan B - Chennai, Kolkata, Bangalore, Ahmedabad, Hyderabad) and Rest of India (Plan C) with differential premiums. The offered sum insured is from Rs50,000 up to Rs5 lakhs; the maximum limit is low considering that new products in market offer up to Rs50 to Rs60 lakh cover. SBI bank and other bancassurance partners comprise of 63% of sales; it will continue to be the lead channel even though the company plans to expand agency channel which contributes to 19% of the current sales.

 

If you live in Plan B or Plan C location, you can still avail of treatment in any location, but the benefit will be restricted as follows –

 

Benefit Plan

Treatment Location A - Mumbai & Delhi

Treatment Location B - Chennai, Kolkata, Bangalore, Ahmedabad & Hyderabad

Treatment Location C - Rest of India

Plan A (Mumbai & Delhi)

100%

100%

100%

Plan B (Chennai, Kolkata, Bangalore, Ahmedabad, Hyderabad)

80%

100%

100%

Plan C (Rest of India)

70%

80%

100%

 

The premiums for some of the age groups and sum insured combination are as follows –

 

Plan option

Age band (yrs)

Rs1 lakh SI

Rs3 lakh SI

Rs5 lakh SI

Plan A

19-35

1851

3616

6392

Plan B

19-35

1598

3122

5520

Plan C

19-35

1513

2958

5229

Plan A

41-45

2731

5401

10582

Plan B

41-45

2360

4665

9138

Plan C

41-45

2235

4419

8657

Plan A

56-60

5997

11451

18943

Plan B

56-60

5180

9889

16360

Plan C

56-60

4907

9369

15499

Premium in Rs

 

SBI General has signed with three TPA (third party administrators) for claims processing. There is no immediate plan to move to in-house claims department. There will be co-pay of 10% on all eligible admissible claims in non-network hospitals. The product covers select day surgery where less than 24 hours hospitalisation for specified procedures like dialysis, chemotherapy, radio therapy, eye surgery, dental surgery (due to accident), tonsillectomy, etc. There will be no medical test up to the age of 45 for people with no medical history. The product offers lifelong renewal and no claims based loading.

 

SBI General has been a slow starter till now with only 1% of general insurance market share, but according to its MD and CEO Bhaskar Sarma “While market share and top-line are important, we are not functioning for their sake only.” This policy is its first retail product in the health segment since its launch over two years ago. Even the group health insurance portfolio is small as the focus has been proper premium pricing. The joint venture partner Insurance Australia Group (IAG) also wants to ensure low loss ratio. According to Mr Sarma, “We are looking at controlling our loss ratios and adopting a risk-based pricing mechanism to be sustainable.”

User

COMMENTS

Anjali Kamble

6 months ago

i want to know premium amount for 45 to 50 age group (mediclaim coverage : 500000)

ABHA CHAWLA MOHANTY

4 years ago

DIFFERENTIAL PRICE TAG IS INSURERS PREROGATIVE ....,WHY TRIMMING OF BENEFITS TO CLASS ?"C" CITIES,,,,,,ELITE ,CONCEPTION??????????????????????

CBI is a caged parrot speaking in master's voice, says Supreme Court

The apex court while examining the affidavit submitted by CBI in the coalgate scam, took a very strong stand and called the investigating agency a 'caged parrot speaking in its master's voice

Taking a strong stand against the Central Bureau of Investigation (CBI) for allowing interference in the coalgate scam report, the Supreme Court on Wednesday called the investigating agency as 'a caged parrot speaking in its master's voice'.

 

"The CBI has become a caged parrot speaking in its master's voice. It is a sordid saga that there are many masters and giving unbridled power to the CBI is not possible. The CBI has become the police force and is in the administrative control of the Central government. CBI investigations have to be independent," the three-judge bench headed by Justice RM Lodha said.

 

The apex court also slammed Attorney General GE Vahanvati, former Additional Solicitor General Harin Raval and officials from the Prime Minister's Officer (PMO) and Coal Ministry. "How on earth could the joint secretaries of the PMO and the Coal Ministry attend the meeting, see the report and suggest changes to it," the Court asked.

 

Earlier, in a nine-page affidavit submitted before the apex court, CBI director Ranjit Sinha admitted making changes in the 'coalgate' draft report on suggestions from Ashwani Kumar and the AG, but stated that it has neither altered the report nor shifted the focus of inquiries in any manner. "...heart of the CBI report was changed on the suggestions of government officials," the Court said.

 

In its nine-page affidavit, the CBI chief had given details of the meetings between the officials of the agency, the law minister, AG, then additional solicitor general Harin Raval and officials of PMO and Coal Ministry.

 

The affidavit had said the changes made in the draft report on the suggestion of the law minister and Vanahvati have 'neither altered the report nor shifted the focus of inquiries in any manner'. "The central theme of the status report had not changed post meetings. There were no deletions of any evidence against any suspect or accused nor were any let off," the affidavit said.

User

COMMENTS

MOHAN

4 years ago

Master's voice or Mistress' voice?

PRABHAT

4 years ago

S/COURT HAS RIGHTLY COMMENTED . BUT GOVT HAS NO SHAME . THEY CELEBERATING KARNATAKA VICTORY . HAD THIS SITUATION BE WITH ANY GOVT OFFICIAL , HE WOULD HAVE BEEN SUSPENDED / DISMISSED BY NOW ?
ALSO HONESTY OF P M IS DOUBTFUL ?

Vaibhav Dhoka

4 years ago

we are in very sordid state.God save our nation.

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